Elliott pushes Japan's Unizo to accept $1.6 bln Blackstone bid (updated)

HIS Co

17/10/2019 09:59

(Adds details from Elliott's letter, background)
    By Junko Fujita
    TOKYO, Oct 17 (Reuters) - Unizo Holdings'  3258.T  top
shareholder Elliott Management pushed the Japan hotel operator
to accept a $1.6 billion tender offer from Blackstone Group
 BX.N , warning it would take "all available measures" if it
fails to do its "fiduciary duty".   
    Activist investor Elliott's warning comes after Unizo had
previously rebuffed an offer from Blackstone. The buyout group
this week ratcheted up its pursuit of the company by launching
the buyout offer, to which Unizo is still deciding its response.
  urn:newsml:reuters.com:*:nL3N27024N
    "We strongly urge you to consider in good faith, and not
unduly obstruct, the Blackstone proposal," Elliott, which owns
13.14% in Unizo, said in a statement.
    It said Blackstone's offer of 5,000 yen is beneficial for
shareholders and the employment conditions Blackstone has
offered is "very generous to your employees". 
    A Unizo spokeswoman said the company is unable to comment on
Elliott's statement. 
    Unizo was little known until travel services provider H.I.S.
Co Ltd  9603.T  launched a hostile bid for it in July. Unizo
ultimately rejected the bid but attracted the attention of other
suitors who see the company as vastly undervalued.
    But Unizo has played hard to get: Last week it rejected a
proposal from Blackstone as well as one from an unidentified
"locally renowned" fund.     
    This month Elliott ended weeks of silence and started to
address its concerns about Unizo's disclosure to its board. That
included seeking explanation on its sudden withdrawal of support
for a bid from SoftBank Group-owned  9984.T  Fortress Investment
Group.  urn:newsml:reuters.com:*:nL3N26U1X3
    Unizo originally welcomed the "white knight" bid from
Fortress but later back-tracked.
    In a separate statement, Fortress said it would extend its
tender offer period until Nov. 1 from Thursday. It did not
sweeten its bid of 4,000 yen a share.
    Unizo shares closed at  4,940 yen on Thursday. 

 (Reporting by Junko Fujita; Writing by David Dolan; Editing by
Muralikumar Anantharaman)
 ((david.dolan@tr.com; +81 3 6441 1526; Reuters Messaging:
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